It is hard to believe that Christmas is a few days away. I wanted to send you one last update to help you stay current with the local real estate market.
2013 was a breakthrough year for many areas. Of course, prices are not as high as they were 8 years ago yet the market did make a turn in the right direction.
Here are a few highlights from the past 12 months:
1) Inventory decreased at a big enough rate to influence prices. In many cases, we are getting sellers an additional 20% more for their properties.
2) Sales increased. I am sure you know this but it is important to note it once again.
3) Interest rates remained very low making it a great time to buy real estate. The low rates have really influenced new buyers to come into the market. Demand for real estate was high this year.
What will we need to look out for in 2014:
Of course, I am not in the business of making predictions yet here are a few topics that are being discussed.
1) New construction is increasing at such a fast pace that it may start pushing prices down for existing homes. The builders are increasing supply too fast right now. I am not anti-development, yet we must understand how it impacts current owners. The reason why prices rose this year was due to low supply. Supply may be on the rise again.
2) In January, the requirements for obtaining financing will get tougher. The new requirements decrease the buyer's buying power by approximately 5%.
3) Due to a competitive real estate market, we will likely start to see a lot of competition for buyers. The way this is likely going to show up is in the "buyer incentives" category. I anticipate seeing a lot of sellers and builders offering closing cost assistance, interest rate buy-downs, and free upgrades.
We are preparing a 2013 Annual Report which you should receive by mid January. If you want specific information about your community, please let us know so we can create a custom report just for you.
We appreciate you allowing us to be your real estate resource. I will continue to keep you informed as the year goes by. Have a Merry Christmas and a Happy New Year.
We are here to serve you so please let us know anytime you need something.
~ Greg Harrelson